There are several types of home loans available, including:
- Conventional loans: These are loans that are not insured or guaranteed by the government. They typically require a higher credit score and down payment compared to other types of loans.
- FHA loans: These are loans insured by the Federal Housing Administration (FHA). They are designed to help low- to moderate-income borrowers qualify for a mortgage with a lower down payment and credit score requirement.
- VA loans: These are loans guaranteed by the Department of Veterans Affairs (VA) and are available to eligible veterans, active-duty military personnel, and surviving spouses. VA loans typically offer competitive interest rates and require no down payment.
- USDA loans: These are loans backed by the United States Department of Agriculture (USDA) and are designed to help low- to moderate-income borrowers in rural areas buy, repair or improve a home.
- Jumbo loans: These are loans that exceed the maximum loan limits set by Fannie Mae and Freddie Mac, which are the government-sponsored enterprises that buy and sell mortgages. They are typically used to purchase high-value homes.
- Fixed-rate loans: These are loans with an interest rate that remains the same for the entire term of the loan, typically 15 or 30 years.
- Adjustable-rate loans: These are loans with an interest rate that can change periodically based on market conditions. The initial interest rate is typically lower than a fixed-rate loan, but it can increase over time.